First Home Super Saver Scheme (FHSS)

About the FHSS Scheme

The First Home Super Saver (FHSS) scheme lets you use voluntary contributions to your super fund to save for your first home. Contributions are taxed at just 15%, often lower than your income tax rate, and you can access up to $15,000 from a single year, with a total of $50,000 across multiple years, plus earnings.

You don't need to be an Australian citizen or resident to use the FHSS scheme.

Before transferring property ownership to you (usually after settlement), you must request a FHSS determination. Once ready, you can apply to release your FHSS amount and its earnings.

Is FHSS Right for Me?

The FHSS scheme isn't for everyone. Ensure you understand the eligibility and release conditions and check if your super fund will release FHSS amounts before making any contributions.

Visit the ATO website for more information on the FHSS scheme, including the essential guide.

Impacts of Using the FHSS Scheme

The FHSS release will affect your tax, and you must include the assessable amount and withheld tax in your return for the release year. The release won’t count as income for family assistance or child support.

If you have outstanding debts with the ATO or another agency, your FHSS release may be offset or delayed.

Key Conditions for Using FHSS

To use the FHSS scheme, you must:

• Be 18 or older when requesting a FHSS determination.

• Be a first-time homebuyer (never owned any property in Australia).

• Be on the title of the property you purchase.

• Not have previously completed an FHSS release request.

  
  

You must intend to live in the property for at least six months within the first year after purchase. You cannot use the FHSS scheme for vacant land (unless you plan to build within 12 months) or for a houseboat, motorhome, or non-residential premises.

Eligibility Criteria

You must meet these conditions to use the FHSS scheme:

• Be 18 years or older when requesting a FHSS determination.

• Be a first-time buyer, having never owned any property in Australia.

• Have your name on the title of the property.

  
  

Couples or friends can each use their individual FHSS entitlements to buy the same property. Previous property ownership doesn’t automatically disqualify you, but you may need to prove financial hardship.

Things to Consider

Before making contributions:

• Read all FHSS requirements.

• Ensure your super fund will release FHSS amounts.

• Check for any fund fees or insurance implications.

• Confirm your super fund has your correct contact details.

  
  

Eligible Contributions

You can access voluntary contributions made after July 1, 2017, including salary sacrifice or after-tax personal contributions. Contributions from KiwiSaver or other foreign super funds can also be included.

Ineligible Contributions

Contributions that aren’t eligible include:

• Super guarantee (SG) contributions.

• Employer-mandated or award-based contributions.

• Government co-contributions.

• Contributions before July 1, 2017.

  
  

How Much Can You Access?

You can access up to $15,000 of voluntary contributions from a single financial year, with a total of $50,000 across multiple years. Associated earnings will also be included.

Contributions Order

The FHSS scheme uses a "first-in, first-out" rule for your contributions. Voluntary non-concessional contributions (after-tax) count fully toward the release amount, while concessional (taxed at 15%) contributions count at 85%.

When to Request a FHSS Release

1. Request a FHSS determination.

2. Apply to release your savings.

3. Sign a home purchase contract and notify us.

4. Receive your FHSS amount.

   
   

You must request a FHSS determination before property ownership is transferred to you, typically after settlement. Once ownership has transferred, you can no longer request a determination.

Step 1: Request a Determination

1. Log in to ATO online services via myGov

   • If you don't have a myGov account, create one and link it to the ATO.

     
     

2. Complete the Determination Request Form

   • The form is mostly pre-filled with your super fund contribution details. Ensure all information is accurate before submitting to avoid delays.

     
     

3. Add Any Missing Contributions

   • If your salary sacrifice contributions from the 2017–18 financial year aren't pre-filled, add them.

   • Use your super fund statement to verify dates, amounts, and types of contributions.

     
     

4. Submit Your Request

   • We’ll provide your FHSS maximum release amount once your request is processed.

   • If there’s an error, request a new determination or amend it.

   • You must correct any mistakes before requesting a release to avoid delays or cancellation.

     
     

Step 2: Request the Release of Your Savings

1. Once you have a Determination

   • You can request a release from your super fund, specifying the amount and the bank account for the payment.

     
     

2. Release Timing

   • If your FHSS determination is from 15 September 2024 onwards, request the release within 90 days of signing a contract.

   • If the determination is on or before 14 September 2024, request it within 14 days of signing.

     
     

3. Mistakes or Changes

   • If you make a mistake after requesting the release, log into myGov to correct it before we process the amounts.

   • Once the release starts, changes can’t be made.

     
     

4. Receiving the Release

   • Expect the release to take 15-20 business days.

   • You’ll receive a payment summary, which you must include in your tax return for the financial year in which you made the release request.

     
     

Step 3: Sign a Contract for a Home and Notify Us

1. Signing the Contract

   • For determinations from 15 September 2024 onwards, sign the contract within 90 days before requesting the release and within 12 months after it.

   • For earlier determinations, sign the contract within 14 days of release request.

     
     

2. Extensions

   • You can get an extension of up to 24 months to sign the contract, but you must notify us within the allowed period.

     
     

3. Notify Us

   • Notify us if you sign a contract or recontribute the amount to your super fund within the required time frame.

Step 4: Receive Your FHSS Amount

1. Processing the Release

   • After your release request, we’ll request your super fund to send the FHSS amount, after withholding tax and settling any debts.

     
     

2. Payment Summary

   • You’ll get a payment summary showing your FHSS amount and the tax withheld. This needs to be included in your tax return for the year you made the request.

     
     

3. Withholding Tax

   • Tax is withheld at either your expected marginal rate or 17%, depending on the information available.

   • The withheld tax is used to offset your end-of-year tax liability.

     
     

4. Tax Return

   • Include the FHSS amount and the tax withheld in your tax return for the year you requested the release.

     
     

State Government Concessions

• Using the FHSS scheme doesn’t affect your eligibility for state government first home buyer concessions. Check with the relevant state authority for eligibility criteria.